The Empowered Group of Ministers on Drought, headed by Agriculture Minister Sharad Pawar, today approved an additional assistance of Rs 256 crore for rejuvenation of orchards in drought-hit districts of Maharasthra.
However, the decision on extension of duty free import of oilcakes to boost fodder supply was left to the Finance Ministry, which will take a call after assessing the demand and supply situation.
“The proposal on providing additional assistance of Rs 256 crore to protect the orchards in drought-hit districts of Maharashtra has been approved,” Pawar told PTI after the meeting here.
The additional funds will be over and above the Rs 400 crore already released under the National Horticulture Mission through a special scheme launched last month for the rejuvenation of orchards in the drought-affected regions of Maharashtra.
Under this scheme, the Centre will bear 50 per cent cost, while the rest will come from farmers.
The EGoM meeting, attended by Finance Minister P. Chidambaram, Home Minister Sushil Kumar Shinde, Railway Minister Pawan Kumar Bansal and Food Minister K.V. Thomas among others, reviewed the situation in drought-hit states like Maharashtra, Karnataka, Gujarat and Rajasthan.
Fodder supply
It also deliberated on the availability and price situation of fodder in drought-hit areas and discussed the proposal on extending the duty free import of oil cakes for six months more to improve fodder supply and curb the price rise.
When asked about this proposal, Chidambaram said: “This has to be decided on file at the department level after assessing the domestic production and import level.”
He said that extending the duty waiver to other varieties of oil cakes like copra cake, palm kernel cake and rice bran extraction will also be decided on file and will be communicated to the EGoM Chair.
Duty free import of oil cakes lapsed on March 31. The EGoM was informed that the prices of fodder products like soya oil cakes have started rising after the lapse of duty free import and there was need to continue duty waiver to check the price rise and enhance domestic supply.
The country has imported 53,090 tonnes worth Rs 84.52 crore oil cakes between September 2012 and January 2013 against 18,769 tonnes worth Rs 21.27 crore in the same period last year, as per the official data.